Virgin opts for monthly current account fee

by Gill Montia

Story link: Virgin opts for monthly current account fee

Virgin Money will be doing a balancing act when it launches as a retail bank by charging a monthly fee for current account customers, in return for reasonable overdraft rates.

The group’s chief executive, Jayne Gadhia, told the BBC that Virgin is focused on making sure its customers know what they’re paying for by charging up front, and eradicating hidden fees.

Virgin accelerated its entry into the UK retail banking sector in January when it acquired private bank, Church House Trust, and expects to launch its full banking services later this year.

If plans are fulfilled, the new bank will stand out from the competition by charging a current account fee regardless of the amount deposited each month.

Meanwhile, Santander has just extended eligibility for its ZERO account.

The fee-free account was launched in January for those with a Santander mortgage and from today is also available to those holding a Santander investment product, or prepared to set one up.